“Blackstone Sells Entire Stake in Embassy REIT for ₹7,100 Crore: India’s First REIT Sees Major Investment Shift”
Global investment giant Blackstone has divested its entire 23.5 percent stake in Embassy Office Parks REIT, India’s pioneering Real Estate Investment Trust (REIT). This transaction, valued at around ₹7,100 crore, involved selling the stake at approximately ₹316 per share through open market transactions. The selling price reflected a discount, with the company’s shares declining by 1 percent to close at ₹332.11 apiece on Wednesday.
Global investment giant Blackstone has divested its entire 23.5 percent stake in Embassy Office Parks REIT, India’s pioneering Real Estate Investment Trust (REIT). This transaction, valued at around ₹7,100 crore, involved selling the stake at approximately ₹316 per share through open market transactions. The selling price reflected a discount, with the company’s shares declining by 1 percent to close at ₹332.11 apiece on Wednesday.
Embassy Office Parks REIT, a collaboration between Blackstone and Bengaluru-based realty firm Embassy Group, saw Blackstone’s stake divestment facilitated through block deals, with participation from existing unit holders like ADIA and new investors like SBI Mutual Fund.
The REIT, which debuted on stock exchanges in 2019 after a public issue raising about ₹5,000 crore, had Blackstone holding a 23.5 percent stake, while Embassy Group retained approximately 8 percent.
Jitu Virwani, CMD of Embassy Group, expressed enthusiasm about widening the REIT’s public float register, aiming to involve high-quality investors. He highlighted the transaction’s testament to REITs’ success in India, portraying the significance of well-operated, premium-quality REITs like Embassy REIT in investor portfolios.
Embassy REIT’s diverse investor base includes domestic mutual funds, insurers, foreign institutional investors, and sovereign wealth funds. Virwani emphasized the REIT’s robust performance and its contribution to the Indian real estate landscape.
Aravind Maiya, CEO of Embassy REIT, noted the growing public shareholding, which has surged from 30 percent during the IPO to 92 percent. Maiya underscored their pioneering role in shaping India’s REIT market and lauded increased investor involvement as a positive sign.
Blackstone has previously divested tranches of its stake in Embassy Office Parks REIT and also launched other REITs in India, emphasizing its significant role in the country’s real estate investment landscape. Embassy REIT manages a substantial portfolio across major Indian cities, encompassing office parks and city center buildings.
Blackstone’s exit from Embassy REIT aligns with its strategic moves in the real estate sector and emphasizes its commitment to driving growth in other avenues.
The development signifies a significant transition in Embassy REIT’s ownership structure while reinforcing the robustness and attractiveness of the Indian REIT market to global investors.
The REIT’s successful performance and investor trust reflect the evolution and growing prominence of REITs in India’s real estate investment landscape.
Sources By Agencies
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